UK New-Let Rental Growth Accelerates to 1.9% Year-on-Year in July

Published by Keith Egan on Aug 17, 2026

Quick Summary

UK new-let rental growth accelerated to 1.9% year-on-year in July, marking the fastest pace in 19 months and reinforcing the strength of rental demand in a supply-constrained market.

• New-let rents are rising faster: Hamptons analysis of Connells Group data shows newly agreed rents increased 1.9% year-on-year, with average rents now exceeding £1,401 per month

• Southern England is leading growth: Outer London rents returned above £2,000 per month, while the South East passed £1,500 for the first time and the South West recorded 3.7% growth

• All-tenancy rents remain resilient: Across new lets and renewals, annual rental growth reached 2.1%, with the average tenant paying £1,258 per month

• Rent increases are supporting landlord income: Where increases occurred, the average uplift was 5.6%, with Scotland recording the largest regional rise at 7.7%

• Professional landlords are well positioned: Persistent demand, constrained supply, and accelerating new-let growth support income-focused investors with well-located and regionally diversified portfolios

New-let rents across Britain rose 1.9% year-on-year in July, marking the fastest pace of growth in 19 months, according to Hamptons' analysis of Connells Group data. The average rent for newly agreed tenancies now exceeds £1,401 per month.

Growth has been led by Southern England. Outer London rents have returned above the £2,000 monthly mark, while the South East passed £1,500 per month for the first time in July. The South West recorded the strongest regional increase at 3.7%.

For all tenancies (including renewals), annual growth stood at 2.1%, with the average tenant paying £1,258 per month. Where rent increases occurred, the average uplift reached 5.6%, with Scotland showing the largest regional rise at 7.7%.

David Fell, Lead Analyst at Hamptons, noted that while growth remains below inflation, July marked the eighth consecutive month of accelerating rental growth. For landlords, the upward trajectory in rents provides a counterweight to higher borrowing costs.

Theme alignment: Supply & Demand Dynamics and Rental Market Strength. Persistent demand and constrained supply continue to support rental performance, particularly in high-growth southern regions. This data reinforces the structural resilience of professionally managed portfolios in a supply-constrained market.

Investor takeaway: The re-acceleration in new-let growth, especially in Southern England, underscores the value of well-located assets for income-focused investors. Professional landlords with diversified regional exposure are positioned to capture sustained rental uplift over the medium term.

Topics:

Insider, London Property, UK Property, Real Estate Market, Market Trends, Rents, Demand, Yield

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Keith Egan

Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital.